Aerospace and defense companies have raised more than $11 billion in the first quarter of 2021 through mergers with SPACs, Space News reports. The SPAC trend does not appear to be letting up, says a new report by Avascent and Jefferies, but analysts caution that these deals, while attractive for space companies, can be risky for investors.
SPAC deals have grown notably in the space sector as they provide companies faster access to the public markets. Mergers can be accomplished in three to six months, compared to the one to two-year timeline for a traditional IPO.
In a new report, Avascent and Jefferies analysts looked at recent high-profile space SPACs that raised billions of dollars based on aggressive growth projections: AST Space Mobile, Arquit, Redwire, Spire, Satellogic, Planet, BlackSky, Rocket Lab, Astra and Momentus. Read more.
